Commercial bank

A commercial bank is like a big piggy bank where grown-ups keep their money safe. Imagine that you have a piggy bank with all your pocket money inside. Now imagine that all the grown-ups in your town put their piggy banks together in a really big safe place. That is a commercial bank.

When you go to a commercial bank, you can open an account and put your money in it. The bank will keep your money safe and make sure that it is always there for you when you need it. But the bank doesn't keep your money in a little piggy bank like you do. They keep it in a special place called a vault, which is very secure, and only the bank employees are allowed to go in there.

Now, when someone wants to buy something like a new toy or a new bike, they give the seller some money. But sometimes, we don't have enough money to buy what we want. That's why the commercial bank lends people money. Just like your mom or dad may give you extra pocket money when you run out, the bank can lend you money and you have to pay them back with a little bit of extra money called interest.

Commercial banks also help businesses by giving them loans to buy things they need like equipment, materials, and even buildings. This is because businesses need a lot of money to run – much more than a piggy bank can hold!

So in summary, a commercial bank is like a big piggy bank that keeps grown-ups' money safe, lends money to people and businesses, and helps people and businesses to manage their money.